Atherley Furniture Company
1571 words 7 pagesKey Events/Case Synopsis
Despite being well-established, over the last three years, sales at Atherley Furniture Company have remained the same while profits have declined by almost 24%. Their chair division produces three different types of chairs, the Atherley, the Caledonia and the Parkdale. Each model has its own production plan and production costs. The increasing production costs, alongside the intense competition the company faces, have become a great cause of concern for John Atherley.
Is Atherley Furniture Company able to continue to operate their chair division while reducing the debt and increasing the profits of the company?
Objective of Key Player
With the use of the company’s income statements for the …show more content…
The decline in the Canadian dollar, decreases the effect freer trade has in the industry. Since imports have become more expensive, competition in the industry has decreased. However, this decline indicating a recession, has also made borrowing funds increasingly unappealing, decreasing the company’s ability to increase its technological advancement. A major advancement the company has been reluctant in making is modifying their equipment to produce their “Atherley” model as well as their “Caledonia” model. In order for the company to continue to becoming more efficient, it is necessary it continues to advance.
PORTER’s Five Forces
The buyer’s in the furniture manufacturing industry are furniture retail stores, as well as, consumers. If manufacturers operate their own retail stores, the buying power is extended the consumers directly. In this case, buyers would hold a great deal of power considering there are many furniture retail stores they may choose from.